North Carolina Down Payment Support Programs

Payments Gateway - These systems are the Mortgage Credit Certificate and the deposit Assistance System.

You purchase a property between January 1, 2009 and December 1, 2009 and should you qualify for one of those programs, you can even be eligible for the $8,000 tax credit only enacted into law.

First, who is a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the prior three years. Here is exactly the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with low and average incomes. The MCC takes this a step farther. An MCC “reduces your tax liability based on a share of the mortgage interest which you pay.

You are able to claim 20% of the interest you pay as a credit on your own federal income taxes, if you are eligible for the MCC. It's possible for you to save up to $2,000 on your taxes.

If you do qualify for the MCC, for 2009, you will manage to combine this with the $8,000 tax credit. This would reduce the tax liability of a buyer's .

Who qualifies for an MCC is based on your own income and also the cost of the home you are purchasing. Household income is defined as the “gross income of the mortgagor and any other person expected to reside in the home who is 18 years of age or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Individual $61,500 2 Persons $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Cost Limitations New House $220,000 Existing House $210,000

The buyer only needs to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC plan outlined above. Like the MCC application, it can be utilized in combination with all the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nonetheless, can't be used together with all the MCC. That is an either or scenario.

The income and house price limitations that apply in Orange, Durham and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Men $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000